Higher automation in other industries creates a large market for actuators to outweigh drop in revenues from the oil and gas industry, says Frost & Sullivan's Industrial Automation Research Team
LONDON, July 20, 2016 /PRNewswire/ -- In response to the drastic drop in oil prices, oil companies all over the world have been deferring exploration activities. This move has sent ripples through the valves and actuators market. Market participants are looking to compensate for the shortfall by tapping the vast opportunities in unconventional energy sources, namely shale gas and sub-sea and oil sands, in North America, Latin America and Western Africa. Alloy steel valves will especially be popular in sub-sea exploration, super-critical and nuclear power plants.
New analysis from Frost & Sullivan, Strategic Analysis of the Global Industrial Valves and Actuators Market (http://frost.ly/l0), finds that the market earned revenues of $31.84 billion in 2015 and estimates this to reach $35.88 billion in 2020.
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"Applications, such as combined cycle power plants and sub-sea exploration, require valves that can withstand extreme temperature and pressure," said Frost & Sullivan Industrial Automation and Process Control Senior Research Analyst Ticaram Ramakrishnan. "Manufacturers will gain a significant competitive advantage by incorporating innovative designs and materials in valves for challenging environments."
In addition to alternate power markets, rising urbanization is causing a surge in demand from power generation and water and wastewater treatment markets, particularly in China and India. Simultaneously, the swelling tide of environment consciousness will open up green energy markets such as nuclear power plants. Due to the concerns over emissions, manufacturers can expect enthusiastic adoption of emission-free valves.
Another prominent trend that is altering the dynamics of the valves and actuators market is automation. There will be a greater need for valve diagnostics, causing a shift in market focus from flow control devices to actuation and diagnostic ones. Furthermore, it will create a market for remote monitoring and preventive maintenance in the next five years. Agile technologies that continuously monitor equipment and provide feedback will enjoy considerable uptake.
"Partnerships and acquisitions play a crucial role for manufacturers in the adoption of new technologies and expansion of product lines," noted Ramakrishnan. "Vendors offering a comprehensive package comprising flow control solutions, automation technologies as well as diagnostic capabilities will have a distinct edge in the market."
Strategic Analysis of the Global Industrial Valves and Actuators Market is part of the Industrial Automation & Process Control (http://frost.ly/l4) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Industrial Enclosures and Cabinets Market Factbook, Growth Prospects for Operator Training Simulation Solutions Market in the Oil & Gas Industry, Invasion of Automation and Robotics in Wastewater Treatment Techniques Globally, When Will Supply Deluge and Price Rout End, and Will Oil Top $50 by 2017?, and Additive Manufacturing Market in Australia. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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